Market for Commercial Biomass remains buoyant despite lower RHI tariff announcement

EnergyMyWay is taking more enquiries and orders for commercial Biomass Boilers than ever, despite this week’s announcement confirming a 10% reduction in the RHI tariff for installations registered after 1st October 2014.

The non-Domestic Renewable Heat Incentive (RHI) is the government scheme designed to encourage the use of renewable energy heating systems by rewarding businesses with generous financial rewards for installing Biomass Boilers, Ground Source Heat Pumps, Air Source Heat Pumps and Solar Thermal systems.

The Domestic Renewable Heat Incentive, designed to encourage homeowners to use renewable energy heating, is not affected and remains at the same attractive level with no reduction envisaged for some time.

The RHI was set at a high level from the outset to encourage early deployment. Even after a 10% decrease to the RHI, Biomass Boilers make an excellent investment for businesses with most installed systems paid back within 5 years.

If you install a commercial renewable energy heating system such as a Biomass Boiler you stand to benefit in two ways:

  1. Typical heating bill savings of between 20% and 50% compared to and existing oil or LPG boiler
  2. Payments from the Government’s Renewable Heat Incentive, index-linked and guaranteed every year for 20 years

Example returns for installations of Biomass Boilers after 1st October 2014

Biomass Boiler SizeRHI payments p.a.Bill savings (v. oil)Payback
199kW£19,873£3,9224 years
130kW£12,982£2,5624-5 years

Non-domestic Biomass Boiler RHI rates from 1st October 2014

Tier 1: 7.6p /kWh
Tier 2: 2.0p /kWh

These rates only apply to Biomass Boilers under 200kW used for non-domestic purposes.

Read more about how the non-Domestic Renewable Heat Incentive works.

EnergyMyWay installs Biomass Boilers and other renewable energy technologies for homes, businesses, schools and communities nationwide. Please contact your nearest office for advice.

James Eades

By: James Eades

Operations Director, James Eades is EnergyMyWay's in-house expert on renewable energy policy, microgeneration technologies and best practice in the renewable energy industry.